McDonald’s believes that all employees deserve to be treated with dignity and
respect. In each and every aspect of the employment relationship, employers need
to act towards their employees as they would themselves want to be treated. The
100% satisfaction of our internal customers – our employees – is essential to
the 100% satisfaction of our external customers. Moreover, McDonald’s is
committed to a policy of complying with the law wherever it does business, and
to maintaining high standards of business conduct. As a result, McDonald’s has
established a well-respected record and reputation for business honesty and
integrity. These principles apply globally, form the basis for McDonald’s own
ethical business practices, and are cornerstones to McDonald’s success.

McDonald’s strongly believes that those suppliers who are approved to do
business with the McDonald’s System should follow the same philosophy, and, in
the best interest of the System, McDonald’s will refuse to approve or do
business with those who do not uphold, in action as well as words, the same
principles. McDonald’s recognizes that its suppliers are independent businesses.
Indeed, it honors that very independence because it provides strength to the
relationship. Nonetheless, actions by those with whom McDonald’s does business
are sometimes attributed to McDonald’s itself, affecting its reputation and the
goodwill it has with its customers and others. It is only natural then that
McDonald’s expects its partners in business to act with the same level of
honesty and integrity.

For these reasons, McDonald’s has established the following policy.
Compliance with this policy is required of all suppliers, and is the
responsibility of each individual supplier. Suppliers shall ensure that their
Subcontractors comply with this policy for employees working on product supplied
to McDonald’s.

Failure to comply with this policy will be sufficient
cause for McDonald’s to exercise its right to revoke a supplier’s approved
status. McDonald’s reserves the right, as a condition of continuation of
approval, to conduct (or have its designee conduct) periodic, unannounced
inspections of suppliers and their facilities and business practices to verify compliance with these standards.

COMPLIANCE WITH APPLICABLE LAWS AND STANDARDS

All business activities of McDonald’s suppliers must conform to all applicable
national and local legal requirements, customs, and published industry standards
pertaining to employment and manufacturing. If statutory requirements and
published industry standards conflict, suppliers must, at a minimum, be in
compliance with the one which, by law, takes precedence.

EMPLOYMENT PRACTICES

Prison or Forced Labor: The use of prison or forced labor by a supplier
is absolutely forbidden. Likewise, the use of labor under any form of indentured
servitude is prohibited, as is the use of physical punishment, confinement,
threats of violence or other forms of physical, sexual, psychological or verbal
harassment or abuse as a method of discipline or control. Suppliers will not
themselves utilize factories or production facilities that force work to be
performed by unpaid or indentured laborers or those who must otherwise work
against their will, nor shall they contract for the production of products for
McDonald’s with Subcontractors that utilize such practices or facilities.

Working Hours: Suppliers must ensure that all employees working on
products supplied to McDonald’s do so in compliance with all applicable national
and local laws and with published industry standards pertaining to the number of
hours and days worked. Such employees are to be provided with reasonable daily
and weekly work schedules and adequate allowance is to be made for time off.
Except in extraordinary business circumstances, employees will not be required
to work more than either (a) the limits on regular and overtime hours allowed by
local law; or (b) 60 hours per week, inclusive of overtime. Adequate time off
shall be at least one day off per week, except in extraordinary business
circumstances. In the event of conflict between a statute and a published
industry standard pertaining to this issue, compliance must be with the one
taking precedence under national law.

Compensation: Supplier employees working on product supplied to
McDonald’s must be fairly compensated and provided with wages and benefits that
comply with applicable national and local laws. This includes appropriate
compensation for overtime work and other premium pay situations required by
applicable national and local laws. If local laws do not provide for overtime
pay, suppliers will pay at least regular wages for overtime work.